On almost any given day, another company is announcing another round of layoffs in response to the recession. But even with the sky-high numbers we’re seeing, some analysts are beginning to say that it’s not as bad as it could be.
 
A recent survey conducted for Towers Perrin showed that companies have been taking a more measured approach to cutting costs, looking at a variety of options before resorting to layoffs. Of the 513 companies who responded to the survey, only 11% said they had made significant reductions in headcount (defined as 10% or more of the workforce). That said, 19% are now considering significant reductions or have such reductions planned.
 
Other methods being utilized include: hiring freezes or reductions, cutting travel and entertainment expenditures, reducing pay/merit increase budgets, and scaling back employee events. (Obtain the full report here.)
 
While layoffs may be unavoidable as time goes on, cutting too deeply can do more harm that good in the long run. ON Semiconductor Corp. CFO Donald Colvin recently offered this advice for a Wall Street Journal article: If you want to do it all through layoffs, then you have to decide ahead of the game what your future business is going to be.” Because the picture coming out of the recession may have to be significantly different than the one that exists now. (Read the full article here.)
 
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